Work detail

Audit Quality in the CR

Author: Mgr. Pěkná Martina
Year: 2011 - summer
Leaders: † doc. Ing. Jiří Havel CSc.
Consultants:
Work type: Doctoral
Finance, Financial Markets and Banking
Language: English
Pages: 102
Awards and prizes:
Link:
Abstract: Audit of statutory financial statements is mandatory for major part of big companies.
Auditor ascertains the validity and reliability of information in the financial statements.
Since stakeholders use financial statements for their decisions, quality of audit services is
important for all users of financial statements.
This thesis concerns about the quality of audit services in the Czech Republic. We focus
on suppliers concentration on audit market using market concentration measures and
based on these data we outline structure of audit market. Our findings suggest significant
heterogeneity of supply side of audit market. We also examine the relationship between
audit quality and cost of capital of audited companies when we expect that higher quality
audit may decrease cost of capital of audited companies. For this purposes we build up
unique data set of non-financial companies and design a model respecting the specifics of
Czech financial market. Surprisingly, results are not consistent with those of existing
research based on US and Chinese data when they suggest that there is no significant
relationship between audit quality and cost of capital.
Downloadable: Rigorous Thesis Pěkná

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